Hi, my property manager does not have a license (but is in the process of getting it). What risks do I have as a landlord for both my long term and short term rentals?

No need to be sarky with false equivalencies. OP is just trying to learn, like all of us.

Would you hire an attorney to represent you before they passed the BAR? Or a Doctor to perform surgery on you before graduating from Medical School? In both scenarios, getting your credentials doesn't make you qualified to handle the job unless you have previous on the job experience.

What kind of license? There are different rules for managing properties if you are a REALTOR or a CAM (community association manager). To properly answer this question, I need more information on what type of license you're referring to, what type of company they work for, and what type(s) of activities they will be doing.

Not something you want to get tangled up with!

@Pouya Banki in Massachusetts anyways.

@Pouya Banki property managers don’t need to have a license…

Thank you @Jeff Copeland🙏🏻

It depends on a lot of factors. California Code, Business and Professions Code (BPC) 10131 addresses this, and states that the following activities constitute the practice of real estate and thus require a real estate license: A real estate broker within the meaning of this part is a person who, for a compensation or in expectation of a compensation, regardless of the form or time of payment, does or negotiates to do one or more of the following acts for another or others: (b) Leases or rents or offers to lease or rent, or places for rent, or solicits listings of places for rent, or solicits for prospective tenants, or negotiates the sale, purchase, or exchanges of leases on real property, or on a business opportunity, or collects rents from real property, or improvements thereon, or from business opportunities. (there are more, I intentionally left out the rest, which are mostly related to sales) However it also states: (a) Subdivision (b) of Section 10131 does not apply to (1) the manager of a hotel, motel, auto and trailer park, to the resident manager of an apartment building, apartment complex, or court, or to the employees of that manager, or (2) any person or entity, including a person employed by a real estate broker, who, on behalf of another or others, solicits or arranges, or accepts reservations or money, or both, for transient occupancies described in paragraphs (1) and (2) of subdivision (b) of Section 1940 of the Civil Code , in a dwelling unit in a common interest development, as defined in Section 4100 of the Civil Code , in a dwelling unit in an apartment building or complex, or in a single-family home, or (3) any person other than the resident manager or employees of that manager, performing the following functions, who is the employee of the property management firm retained to manage a residential apartment building or complex or court and who is performing under the supervision and control of a broker of record who is an employee of that property management firm or a salesperson licensed to the broker who meets certain minimum requirements as specified in a regulation issued by the commissioner: (A) Showing rental units and common areas to prospective tenants. (B) Providing or accepting preprinted rental applications, or responding to inquiries from a prospective tenant concerning the completion of the application. (C) Accepting deposits or fees for credit checks or administrative costs and accepting security deposits and rents. (D) Providing information about rental rates and other terms and provisions of a lease or rental agreement, as set out in a schedule provided by an employer. (E) Accepting signed leases and rental agreements from prospective tenants. (b) A broker or salesperson shall exercise reasonable supervision and control over the activities of nonlicensed persons acting under paragraph (3) of subdivision (a). (c) A broker employing nonlicensed persons to act under paragraph (3) of subdivision (a) shall comply with Section 10163 for each apartment building or complex or court where the nonlicensed persons are employed.

Why would you add unnecessary risk to your business? If your property manager unknowingly violates fair housing laws, for example, you are easy prey for a prosecuting attorney because you knowingly hired an unlicensed person.

What if my property manager does not have a license? What if my property manager does not have a license?

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What if my property manager does not have a license?

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